Celonis teams up with IBM and Red Hat for process mining

Celonis teams up with IBM and Red Hat for process mining

The move will help Big Blue’s customers better analyse data generated from their processes like supply chain management.

Celonis has struck a strategic partnership with IBM to help companies make the most of the digital transformation raging in the wake of the COVID-19 pandemic.

The Munich, Germany based Celonis a fast-growing German process mining software startup.

IBM’s Global Business Services consulting arm will incorporate the Celonis Execution Management System into its offering. This will add the ability to analyse data thrown off by processes like supply-chain management, finance or procurement. This “mining” operation will allow IBM to identify weaknesses and recommend remediation measures to their customers.

Celonis will shift to IBM’s OpenShift Red Hat platform

Celonis will also shift its software stack to IBM’s Red Hat OpenShift platform. This will enable client companies to operate in an open ‘hybrid’ setting. Such an environment can include public or private cloud data centres, on-premise servers and mainframe computers.

This move represents a big step for Celonis. The company last raised funds in Germany from investors at a valuation of $2.5 billion in 2019. Although still a startup, their clients include Coca-Cola, Siemens, Uber and Vodafone.

“This is the most comprehensive and committal partnership that I’ve been part of,” said Miguel Milano, chief revenue officer of Celonis. Milano, who is also a co-owner, came to Celonis from Salesforce a year ago.

“We took the risk because we saw the opportunity and the value to re-engineer our full stack to run on Red Hat OpenShift. That is massive,” Milano, a 28-year software industry veteran, told Reuters in an interview.

Adding Celonis to IBM’s consulting offering can help clients to identify where the value can be found across a range of applications. This, they say, will make it possible to benchmark performance, deploy artificial intelligence or trigger automation.

“Every workflow in every organization is now fair game,” said Mark Foster, senior vice president at IBM Services.

Celonis has doubled bookings and revenues over the past year. Milano said the partnership offered an opportunity to accelerate its growth further.

“Our breakthrough from a strategic perspective was to realise that Celonis alone cannot take our platform to every company, every industry, every process,” he said.